Abstract

The research was a contribution to the work of researchers in the field of Saudi banks in general, and a statement of the advantages and disadvantages of banking integration, and its role in the economic development of Arab countries in general and Saudi Arabia in particular , This analysis was carried out by reviewing the latest merger in the Saudi banking sector between Al-Awwal Bank and Saudi Arabia Britch Bank ( SABB) The researcher adopted the descriptive approach when talking about the applied reality of merger, and the analytical approach when presenting the proposed development mechanisms to overcome the problems of application and suggest practical solutions for the integration of Saudi banks with each other. The study concluded with a number of recommendations and observations, the most important of which are: 1.Saudi Arabia should adopt policies and procedures that will enhance the potential of banks' consolidation to enhance their financial services sector and to make the sector more competitive among foreign banks in international markets, especially after the Saudi market joined the MSCI Emerging Markets Index, which is one of the most important indicators that All stock markets compete to join him 2.Calling on the central banks in the Arab Gulf countries to adopt the activation of the formula of inter-bank mergers and acquisitions, to encourage large banks to acquire small banks that cannot meet the challenges of the new competition market, and to fulfill the legislative and regulatory requirements imposed by central banks such as the instructions of the Basel Committee (3).